- Transocean (RIG +0.2%) and Diamond Offshore (DO +0.4%) are downgraded to Sell from Neutral with a $40 price target at Citigroup as part of a negative call on the offshore drilling services sector.
- Pricing power is beginning to erode in the sector, the firm says, believing a clear shift in the balance of power at the bargaining table is occurring.
- RIG opens flattish but slipped 1.8% yesterday after issuing its latest fleet status report which showed the Cajun Express deepwater rig received a contract to operate six wells at a dayrate of $495K vs. the previous rate of $600K.
- Citi also cuts Noble Corp. (NE +0.5%), to Neutral from Buy.
- Others to watch: RDC, ESV, SDRL, HERO, VTG.
Transocean, Diamond Offshore cut to Sell at Citi in negative sector call
Dec 20 2013, 10:15 ET